Heranba Industries IPO is going to open for subscription from 23 FEB 2021 to 25 FEB 2021. The company aims for an issue size of 624.34 – 625.24 Crore through this IPO.
Also read: IPO List 2021: a complete list of IPOs in 2021
Heranba Industries Limited
Heranba Industries is a crop protection chemical manufacturer, exporter, and marketing company based out of Vapi, Gujarat. The company manufactures intermediates, technicals, and formulations and it is among the leading producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin in the domestic market.
The company holds registrations for 18 Technicals for manufacture and sale in India, 93 Technicals & Formulations for manufacture and sale in the export markets, and 167 Formulations registered for manufacturing and sale in India. Applications for registration of 13 Technicals & Formulations for manufacture & sale in India and 2 Technicals to manufacture for the export markets have been filed with the CIB&RC and are in the process of evaluation. In FY2022, the company exported its products to more than 60countries in Latin America, CIS, Middle East, Africa, Asia, and southeast Asia. In the domestic market, Heranba Industries has more than 8,600 dealers having access to 21 depots across 16 states and one union territory in India.
Objective of the Issue
- To meet business working capital requirements.
- For public issue expenses.
- To meet general corporate purposes.
Competitive strengths
- Range of product portfolio including Intermediates, Formulations, and Technicals.
- Domestic as well as global reach.
- Strong distribution network.
- Large customer base.
- Experienced promoters and management team.
Basic details about the company
| Full name | Heranba Industries Limited |
| Sector | Chemicals |
| Industry | Pesticides-Agrochemicals |
| Company Website | www.heranba.co.in |
Dates to remember
| IPO Opening date | 23 February 2021 |
| IPO Closing date | 25 February 2021 |
| Basis of Allotment date | 02 March 2021 |
| Initiation of Refunds | 03 March 2021 |
| Credit to Demat Account | 04 March 2021 |
| Listing Date | 05 March 2021 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹624.34 – 625.24 crore |
| Number of shares offered | 90,15,000 Shares |
| Face value | ₹10 per equity share |
| Price band | ₹626 to ₹627 per equity share |
| Retail portion | 35% |
| Lot size | 23 Nos |
| Minimum application | 1 lot – 23 shares |
| Maximum application | 13 lot – 299 shares |
| Minimum application amount | ₹14,421 |
| maximum application amount | ₹187,473 |
| Listing Exchange | BSE, NSE |
Category-wise Break up
Anchor: 30,04,500 Shares = 180.27 Crores
QIB: 20,03,000 Shares = 120.18 Crores
NII: 15,02,250 Shares = 90.14 Crores
RII: 35,05,250 Shares = 210.32 Crores (Lot size: 25 = 1,40,210 Forms)
Total Issue: 100,15,000 Shares = 600.90 Crores.
Issue Size = 25% of Post Issue Equity
Financial summary
| Heranba Industries’ financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 750.4 | 1,011.8 | 967.9 | 619.2 |
| Expenses | 674.1 | 889.7 | 839.1 | 529.1 |
| Net income | 47.0 | 75.6 | 97.4 | 66.3 |
| Net margin (%) | 6.3 | 7.5 | 10.1 | 10.7 |
Valuation of Heranba Industries (as of FY2020)
| Earnings Per Share (EPS) | ₹25.03 |
| Price/Earnings (PE ratio) | 25.01 – 25.05 |
| Return on Net Worth (RONW) | 30.47% |
| Net Asset Value (NAV) | ₹82.15 per share |
Company Promoters
- Sadashiv K Shetty
- Raghuram K Shetty
| Pre Issue Share Holding | 98.1% |
| Post Issue Share Holding | 74.1% |
Heranba Industries IPO Lead Managers
- Guinness Corporate advisors Pvt Ltd
Registrar of Heranba Industries IPO
Bigshare Services Private Limited
1st Floor, Bharat Tin Works Building,
Opp. Vasant Oasis Makwana Road Marol,
Andheri (East), Mumbai – 400059
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Heranba Industries Contact Details
Heranba Industries Limited
101 / 102, Kanchanganga,
Factory Lane, Borivali – West,
Mumbai – 400 092, Maharashtra
Phone: +91 22 2898 7912
Email: compliance@heranba.com
Website: www.heranba.co.in
Heranba Industries IPO Subscription Status
| Category | Day 1 | D 2 | D 3 |
| QIB | 0.00x | 1.01x | 67.45x |
| NII | 0.09x | 0.86x | 271.15x |
| RII | 1.65x | 4.52x | 11.84x |
| Total | 0.84x | 2.74x | 83.29x |
Heranba Industries IPO Allotment Status
Heranba Industries IPO allotment status will be available on Bigshare Services’ website.
Click on this link to get allotment status.
Final thoughts
Heranba Industries IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.
Happy Investing
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